Hong Kong Stocks Fall for 5th Day; CyberWorks, China Mobile Off
quote.bloomberg.com
By Yeong Choy Leng
Hong Kong, Sept. 14 (Bloomberg) -- Hong Kong stocks fell for a fifth day, led by Pacific Century CyberWorks Ltd. on persistent concern over the company's ability to deliver earnings that will justify its valuations after some investors, including GigaMedia Ltd. and CMGI Inc. ended their joint ventures.
``There have been hiccups in some of CyberWorks' projects and since it's largely a concept stock, we'll see a domino negative impact'' as its internet businesses have yet to generate earnings, said Tammy Fung, a fund manager at Darier Hentsch Asia Ltd., which invests $200 million in Asia, excluding Japan.
China Mobile (Hong Kong) Ltd. and other computer-related stocks fell as a series of profit warnings on their U.S. counterparts highlights concern the industry's earnings may not justify valuations.
The Hang Seng Index fell 145.38, or 0.9 percent, to 16,484.40, extending its 5.5 percent losses in the past four trading days. In the broader market, 186 decliners outpaced 80 gainers while 439 were unchanged. The Dow Jones Industrial Average fell 0.5 percent, led by Hewlett-Packard Co. and Intel Corp. on concern profits will fall short of expectations.
In China, B shares that foreigners can own rose. The Shanghai B-share index rose 0.3 percent to 69.26, while the Shenzhen B- share index rose 0.03 percent to 119.23.
The following is a list of companies whose shares were active.
Hong Kong stocks:
Pacific Century CyberWorks Ltd. (8 HK ), Asia's second-largest Internet investment firm, fell 35 cents, or 2.9 percent, to HK$11.85. SG Securities (HK) Ltd. issued put warrants on the stock, fueling expectations of further downside of the stock. GigaMedia Ltd., one of Taiwan's largest Internet service providers, last week scrapped a plan to form a venture with CyberWorks to distribute video content, hindering the latter's regional expansion plans. Separately, CMGI Inc., a U.S.-based Internet investment company, said it will forego plans to start an international venture fund with CyberWorks. CyberWorks also fell on persistent concern Cable & Wireless Plc will sell its CyberWorks shares, increasing the share supply and diluting the existing share value.
Telecommunications and computer-related shares fell in tandem with their U.S. counterparts. China Mobile (Hong Kong) Ltd. (941 HK ), China's No.1 publicly traded mobile telephone company, fell HK$1, or 1.7 percent, to HK$57.25. Legend Holdings Ltd. (992 HK ), China's No. 1 computer maker, fell 20 cents, or 2.4 percent, to HK$8.05. QPL International Holdings Ltd. (243 HK ), a computer parts manufacturer, fell 5 cents, or 0.8 percent, to HK$6.55. ASM Pacific Technology Ltd. (522 HK ), which makes machines to assemble computer chips, fell 25 cents, or 1.1 percent, to HK$21.60.
China B shares:
China's B shares rise after the World Trade Organization's Deputy Director General Andrew Stoler said in Australia that China is on track to join the world trade body once it completes the technical process involved in affirming its membership. That's raised optimism that the pace of the country's economic reforms will be boosted with the WTO membership.
Shanghai Tyre & Rubber Co. (900909 CH ), which makes rubber tires, rose 0.2 U.S. cent, or by 0.5 percent, to 37 U.S. cents. Shanghai Waigaoqiao Free Trade Zone Development Co. (900912 CH ), a real estate developer that prepares site for export-related companies, rose 0.6 U.S. cents, or 1.4 percent, to 43.2 U.S. cents.
Textile makers extended gains on hopes that their sales will be boosted by stronger demand for warm clothing during the autumn and winter seasons. Shanghai Haixin Group Co. (900917 CH ), which sells fur and plush products, rose 0.6 U.S. cent, or by 1.2 percent, to 49.6 U.S. cents. Shanghai Erfangji Co. (900902 CH ), which makes machine parts for the textiles industry, rose a second day, advancing 0.1 U.S. cent, or 4 percent, to 26.2 U.S. cents. |
